Free cash flow remains highly volatile, swinging from a negative 5.0% margin in 2024Q2 to a peak of 23.0% in 2025Q4, driven largely by unpredictable working capital fluctuations.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 67.56M | 59.5M | 43.31M | 34.04M | 31.34M | 20.23M | 22.01M | 2.84M | 3.52M | 2.43M | 59.96M | 43.92M | 26.63M | 23.62M |
| Operating CF Margin % | - | 10.95% | 9.01% | 7.66% | 6.59% | 5.39% | 7.05% | 1.02% | 1.38% | 1.08% | 19.42% | 11.74% | 10.2% | 12.03% |
| Operating CF Growth % | 363.35% | 37.38% | 27.24% | 8.63% | 54.91% | -8.11% | 674.87% | -19.29% | 45.03% | -95.95% | 36.51% | 64.95% | 12.72% | - |
| Net Income | 12.23M | 14.95M | 19.52M | 23.98M | 36.54M | 15.94M | 16.13M | -4.45M | -37.46M | -22.01M | 5.4M | 30.86M | 13.3M | 8.59M |
| Depreciation & Amortization | 18.21M | 18.11M | 16.42M | 15.93M | 14.89M | 15.1M | 16.83M | 17M | 18.41M | 16.92M | 16.93M | 15.99M | 14.2M | 14.29M |
| Stock-Based Compensation | 5.29M | 6.96M | 8.54M | 7.51M | 3.48M | 1.25M | 136K | 250K | 961K | 1.99M | 3.58M | 9.63M | 4.53M | 610K |
| Deferred Taxes | 5.93M | 0 | -3.94M | 331K | 1.55M | -2.16M | 1.04M | 1.15M | -6.9M | -9.17M | -1.83M | 10.91M | -1.43M | 1.96M |
| Other Non-Cash Items | 12.25M | 12.16M | 10.3M | 1.44M | 3.5M | 7.63M | 5.29M | 3.44M | 21.36M | 18.76M | 4.46M | 7.34M | 943K | -67K |
| Working Capital Changes | 15.7M | 7.32M | -7.54M | -15.16M | -28.62M | -17.53M | -17.41M | -14.54M | 7.15M | -4.06M | 31.42M | -30.83M | -4.92M | -1.76M |
| Change in Receivables | -3.93M | -686K | -11.79M | 6.79M | -19.75M | -6.36M | -11.66M | -688K | -5.52M | -6.4M | 19.85M | -9.56M | -7M | 4.37M |
| Change in Inventory | 13.12M | 3.61M | -1.99M | -1.64M | -10.7M | -33.39M | -6.11M | -10.41M | -2M | 2.83M | 5.79M | -4.42M | -5.76M | 5.71M |
| Change in Payables | -1.56M | 7.51M | 2.76M | -11.26M | -453K | 6.58M | 1.66M | 1.13M | 2.41M | 5.66M | -6.39M | 1.66M | 1.47M | -9.01M |
| Cash from Investing | -63.39M | -65.13M | -9.22M | -6.22M | -17.77M | -9.92M | -7.09M | -2.57M | -5.85M | -8.79M | -14.29M | -13.67M | -71.81M | -9.24M |
| Capital Expenditures | -16.39M | 0 | -9.26M | -6.41M | -17.87M | -10.07M | -7.09M | -4.17M | -5.63M | -7.26M | -14.29M | -18.67M | -16.96M | -9.24M |
| CapEx % of Revenue | 2.89% | 3.34% | 1.93% | 1.44% | 3.76% | 2.69% | 2.27% | 1.5% | 2.2% | 3.25% | 4.63% | 4.99% | 6.5% | 4.71% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.75M | -12.29M | -21.26M | -24.07M | 0 | 0 |
| Other Investing | 13K | -18.11M | 36K | 183K | 95K | 156K | 0 | 150K | -220K | -1.53M | 0 | 5M | 0 | 0 |
| Cash from Financing | -16.39M | -6.22M | -12.96M | -26.44M | -23.16M | -47.23M | 23.98M | -1.93M | -519K | -7.88M | -21.92M | -29.4M | 48.53M | -12.11M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -536K | 0 | -8.68M | -250K | 0 | 0 | 0 | 0 | 0 | 0 | -6.01M | 77.01M | 0 | 2K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.54M | -7.52M | -230.36M | 0 | 0 |
| Share Repurchases | -536K | 0 | -8.68M | -250K | 0 | 0 | 0 | 0 | 0 | 0 | -6.01M | 0 | 0 | 0 |
| Other Financing | -1.91M | -1.98M | -16.16M | -368K | -1.94M | -12.31M | -2.51M | 0 | 0 | -341K | 611K | -17.66M | -421K | 10K |
| Net Change in Cash | -12.22M | -11.84M | 21.13M | 1.38M | -9.65M | -36.92M | 38.92M | -1.61M | -2.91M | -13.75M | 23.35M | 665K | 3.24M | 2.31M |
| Free Cash Flow | 51.17M | 41.33M | 34.06M | 27.64M | 13.47M | 10.15M | 14.92M | -1.33M | -2.11M | -4.84M | 45.66M | 25.25M | 9.67M | 14.38M |
| FCF Margin % | 9.01% | 7.6% | 7.09% | 6.22% | 2.83% | 2.71% | 4.78% | -0.48% | -0.83% | -2.16% | 14.79% | 6.75% | 3.71% | 7.32% |
| FCF Growth % | 89.6% | 21.35% | 23.23% | 105.18% | 32.63% | -31.94% | 1218.52% | 36.9% | 56.29% | -110.59% | 80.83% | 161.11% | -32.76% | - |
| FCF per Share | 4.32 | 3.47 | 2.87 | 2.32 | 1.15 | 0.86 | 1.33 | -0.12 | -0.19 | -0.43 | 4.23 | 2.80 | 1.17 | 1.75 |
| FCF Conversion (FCF/Net Income) | 4.18x | 3.98x | 2.22x | 1.42x | 0.86x | 1.27x | 1.36x | -0.56x | -0.09x | -0.11x | 11.11x | 1.42x | 2.00x | 2.75x |
| Interest Paid | 16.1M | 0 | 26.32M | 25.74M | 27.71M | 22.27M | 22.75M | 23.04M | 0 | 18.47M | 15.07M | 11.99M | 6.79M | 7.25M |
| Taxes Paid | 6.44M | 0 | 9.76M | 10.46M | 12.58M | 9.79M | 1.3M | 780K | 0 | 30K | 468K | 10.14M | 3.22M | 4.68M |
Physical card obsolescence risk
As reported in financial statements, PMTS exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching a high of 8.39 in 2025Q2, suggesting that reported earnings are frequently decoupled from the actual cash-generating capacity of the underlying business operations.
The persistent gap between net income and operating cash flow indicates that non-cash charges and working capital adjustments are the primary drivers of reported profitability. Investors should monitor whether this reliance on accruals reflects sustainable operational efficiency or merely the timing of accounting entries that may not translate into long-term shareholder value.
Based on the provided quarterly data, free cash flow margins have fluctuated wildly from a negative 5.0% in 2024Q2 to a peak of 23.0% in 2025Q4, indicating that the company's ability to generate consistent surplus cash remains highly sensitive to seasonal and operational timing variances.
This erratic FCF trajectory complicates the assessment of the company's true cash-generating power, as the swings appear to be driven more by working capital fluctuations than by structural improvements in core margins. The lack of a stable FCF baseline suggests that the company may struggle to fund internal growth initiatives without relying on external financing or debt management.
According to recent SEC filings, working capital changes have been a major source of cash flow volatility, with a notable $21.5 million inflow in 2025Q4 followed by significant outflows in other periods, highlighting the company's dependence on inventory and receivables management to maintain its liquidity position.
The reliance on working capital shifts to bolster cash flow suggests that the company's operational cycle is prone to lumpy inflows, which may mask underlying weaknesses in core cash generation. Analysts should investigate whether these swings are indicative of aggressive inventory stockpiling or simply the inherent seasonality of the card issuance business.
As reported in financial statements, PMTS maintains a relatively low capital intensity, with CapEx/Revenue ratios generally hovering between 1.2% and 4.3% over the last ten quarters, suggesting that the business model does not require massive, continuous reinvestment in physical infrastructure to sustain its current market position.
While the low capital intensity is a positive signal for cash flow, it also raises questions about whether the company is sufficiently investing in the digital-first technologies required to compete in a changing landscape. The modest CapEx levels may be sufficient for maintaining existing manufacturing lines but could prove inadequate if the company needs to pivot toward higher-margin digital security solutions.
Quick answers to the most common questions about buying PMTS stock.
CPI Card Group Inc. (PMTS) generated $59.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CPI Card Group Inc. (PMTS) generated $41.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CPI Card Group Inc. (PMTS) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.